How rewarding are Credit Card Programs?

August 18

It has become some sort of a trend in the credit cards market to woe customers with higher rewards and bonuses especially for those who apply for new accounts for credit cards. According to CEO of WalletHub.com and CardHub.com, Odysseas Papadimitriou, the average bonus for these sign ups is currently at its peak.

He mentions that if a person is a good credit card handler, it is easy to use this offer to the fullest. The ultimate challenge may be to locate the best rewards. This may include airline mileage, membership points and cash return offers.

It is common for cards to offer bonuses like mileage at the time of application.

Jelena Ewart, the GM of banking and credit at NerdWallet.com shares her opinion on giving rewards for a lifetime as consumers appreciate these kinds of offers. If not handled with care, a person may wind up with a card that doesn’t offer much.

It is vital for you to understand the kinds of spending habits you possess. Offers on cash back may require you to spot around two and sometimes even three categories that offer the most rewards. At other instances, card holders may choose these categories themselves for you. For instance, they may chose hotels, airlines, groceries and gasoline and then rotate them after a couple of months.

Ewart states that Capital One Gold Card Quicksilver Card prevails as the gold standard. The cash back may be used for anything you desire along with a $100 bonus after spending a minimum of $500 during the first quarter.

Other cards have better rewards but the issue with them is that they come bearing an annual fee. Sites like NerdWallet.com provide calculators that are a big help. They also help by directing you towards the best deals available on cards. They do this by taking every bit of detail into account which may include explanations, fees and pros and cons.

For those who prefer travel points and airline mileage, a frequent-flier card is your thing. Free times and first class ticket upgrades are a plus. However, you should be cautious when considering its restrictions.

Other cards may offer travel benefit convertible mileage points with endless restrictions and an unfavorable interest rate. At a few levels, redemption in membership points may occur.

Some people apply for cards in order to transfer balance to enjoy a lower interest rate. Card issuers are not always this generous without something in it for themselves. The point is that they think you will run back to old habits. If a monthly payment is missed or a balance is carried forward after the initial period then your APR may increase to 20 percent.

The spokesperson for National Foundation for Credit Counseling, Gail Cunningham reported than anyone can win the rewards, but it’s vital to know and play by the rules. A balance carried over by months will not get you anywhere. Experts also back up this statement that if you end up spending more than you needed to then you are not winning anything at all.